How Delhi Government Was Able To Achieve an EV Penetration Rate of Nearly 20%

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The Delhi government’s “i3 model” – Inclusion, Incentivization, and Innovation – has played a pivotal role in fostering high electric vehicle adoption rates

Launched on August 7, 2020, Delhi’s Electric Vehicle Policy policy may not have been the first in India, but its visionary yet practical approach has garnered widespread admiration. Over the past three years, it has not only captured the hearts of Delhiites but has also gained recognition globally.

In December 2022, Delhi achieved a noteworthy milestone with a monthly EV contribution of 16.5%, followed by an impressive 19.5% in December 2023. This translates to one in every five vehicles sold in the city being electric — a substantial leap towards the 2020 Delhi Electric Vehicle Policy goal of 25% EV contribution by 2024.

Fig 1: An electric auto charging point at a bus stop in South Delhi's Kalkaji locality. Photo Courtesy: Nishat Gauhar

When we discuss the jump in EV sales in December, we also see a major jump in the sale of e-rickshaws, private 4W and 2W – 42%, 59% and 85% respectively to the average of the first 11 months of 2023. The impact of high sales is attributed to the two main phenomenon:

Inventory clearance: The month saw good discounts on EVs ( in all categories) due to the pressure of clearing this year’s manufactured inventory.
Uncertainty over FAME subsidy for OEMs in the future: The Central government appears reluctant to introduce FAME-III after the second phase of the scheme was extended till March 2024 following its 3-year completion in March 2022. With no FAME subsidy, the cost of an electric 2W may increase by Rs 15,000 to 45,000, leading to more sales in December.

If we look at 2023 EV sales, Delhi sold 73,610 units over its previous high of 62,241 in 2022. It is nearly 5% of the total India’s EV sales. The secret to Delhi’s success lies in the “i3 model”: Inclusion, Incentivization, and Innovation. This model has played a pivotal role in fostering high electric vehicle adoption rates in the city, setting Delhi apart from other states in India. Given this scenario, the day Delhi realises its 2024 vision is undoubtedly fast approaching.

INCLUSION

Stakeholder Engagement: From the inception of Delhi’s Electric Vehicle Policy, the commitment towards inclusion was evident. The approach was clear – listen to the people. Designing the initial policy draft involved understanding public concerns and crafting solutions within the policy framework.
The involvement of key players in the EV ecosystem, spanning OEMs, Charge point operators, Service providers, and Discoms, was integral. A year-long engagement process invited suggestions, a practice that even persists today. This continuous dialogue ensures ongoing innovation and timely policy adjustments based on collective insights.

Fig 2: Electric cycles. Pic -Yulu

Delhi EV Incentives

EV purchase subsidies: To bridge the cost gap between Electric and ICE vehicles, Delhi took a pioneering step by offering substantial subsidies across vehicle segments. As 2-wheelers and 3-wheelers were the priority segment for Delhi, they kept no subsidy caps while on the other side, Electric cars enjoyed a Rs 1.5 lakh subsidy, limited to the first 1000 cars only.
EV subsidy impact: By December 2023, the Delhi government had disbursed a significant Rs 179 crores in subsidies, incentivizing citizens to choose Electric vehicles.
Tax Waivers for Mass Adoption: In its commitment to EV adoption, Delhi waived road tax and registration fees. With over 1.6 lakh vehicles sold under the policy by December 2023, the government forewent nearly Rs 250 crores in revenue, signalling a strong push for electric mobility.

INNOVATION

The Delhi government was also at the forefront of bringing innovation and use of technology to push higher adoption of EVs:

Single window scheme for purchase of affordable EV charger: The Delhi government pioneered a cost-effective approach to EV charger adoption. For less than Rs 2000, including the charger, installation, and three years of maintenance, individuals could benefit from a streamlined process managed by the local Discom.
Lowest EV Charging Tariff: Delhi boasts the lowest EV charging tariff in India, offering public charging station services at just Rs 3 per unit at the locations offered under DTL tender. This not only stands as the most competitive rate in the country but potentially one of the lowest globally.
Electric Cycle Incentives: Setting a precedent, Delhi became the first state in India to incentivize electric cycles, giving a significant boost to the E-cycle industry across the nation.

Global Recognition for Delhi’s EV Model

The success of Delhi’s Electric Vehicle Policy resonates not just within India but globally. While Delhi draws insights from other states, it equally serves as a source of learning and innovation for them. This collaborative approach has propelled India’s remarkable EV growth. In 2023, the nation registered 15.29 lakh EVs, a staggering 50% increase from 2022. The EV contribution to total vehicle sales in 2023 reached 6.39%, a substantial rise from the previous year’s 4.75%, showcasing the collective impact of state-level initiatives on a national scale.

Delhi’s imperative for a cleaner and greener environment aligns with the nationwide demand for sustainable solutions. The key lies in the electrification of public transportation across India. This not only translates to reduced travel costs and commute times but also addresses the pressing issue of pollution.

Priyadarshi Singh is a Consultant - Sustainable transportation

Sr. No	Vehicle segment	Incentive available	Number of vehicles to be incentivised	Maximum incentive per vehicle
1	e-2W (L1 & L2)	INR 5000/kwh	1,00,000	10,000
2	e-3W autos (L5M)	INR 5000/kwh	15,000	30,000
3	e-3W goods carrier (L5N)	INR 5000/kwh	10,000	30,000
4	e-4W cars (M1)	INR 5000/kwh	10,000	1,50,000
5	e-4W goods carrier (N1)	INR 5000/kwh	10,000	1,00,000
6	e-buses* (SRTu)	10% vehicle cos (ex factory)	1000	20,00,000

Road Tax / Vehicle Registration Fees	Manufactured within the State	Manufactured outside the State
Exemption on Road Tax	100% exemption for first 10,000 buyers 75% exemption for 10,001-15000 buyers 25 % exemption after 15000 buyers upto policy period	25% upto policy period
Exemption from Vehicle Registration Fees	100% exemption for first 10,000 buyers 75% exemption for 10,001-15000 buyers 25 % exemption after 15000 buyers upto policy period	25% upto policy period

S No	Type of PCS/SPCS	Incentive amount	Maximum Incentive available per PCS/SPCS	Max number of PCS/SPCS to be incentivised
1	Slow	60% of the cost	INR 10,000	15,000
2	Moderate/Fast	50% of the cost	INR 5,00,000	500
3	Solar Based fast#	70% of the cost	INR 7,00,000	500

Type of Unit	Max Limit	Max Admissible Subsidy
Micro	30% of FCI	Rs 2 Cr
Small		Rs 7 Cr
Medium		Rs 15 Cr
Non MSME		Rs 30 Cr

Sr No	Vehicle Segment	Incentives
1	Assured Buyback,	6% of total vehicle cost capped at INR 10,000/-
2	Battery warranty of at least 5 years	4% of total vehicle cost capped at INR 6,000/-

How Delhi Government Was Able To Achieve an EV Penetration Rate of Nearly 20%

Priyadarshi Singh

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Priyadarshi Singh

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5 kWh

Vehicle Category	Incentive	Maximum Incentive	Number of Electric Vehicles to be incentivized
e-Bicycle	Upfront: 25% of Cost of Bicycle	Rs. 3,000	First 25,000 Bicycle purchased during the policy period
e-2W	Upfront : Fixed Battery: Rs. 5,000/kWh Swappable Battery: Rs. 3000/kWh Scrapping : Rs 5,000	Rs. 30,000 Rs. 15,000 Rs. 5,000	First 10,000 vehicles registered during the policy period
e-Cart	Upfront : Fixed Battery: Rs. 5000/kWh Swappable Battery: Rs. 3000/kWh Retrofit Kit: 15% of cost	Rs. 30,000 Rs. 10,000 Rs.10,000	First 1000 e-Carts registered during the policy period
e-Autos	Upfront : Fixed Battery: Rs. 5000/kWh Swappable Battery: Rs. 3000/kWh Retrofit Kit: 15% of cost Scrapping : Rs 7,500	Rs. 30,000 Rs. 15,000 Rs. 15,000 Rs. 7,500	First 1000 e-Autos registered during the policy period
e-Goods Carrier L5N	Upfront : Fixed Battery: Rs. 5000/kWh Retrofit Kit: 15% of cost Scrapping: 15,000	Rs. 50,000 Rs. 15,000 Rs. 15,000	First 1000 Goods Carrier L5N registered during the policy period
e-Goods Carrier N1	Upfront: Fixed Battery: Rs. 5000/kWh Retrofit Kit: 15% of cost Scrapping: 15,000	Rs. 80,000 Rs. 25,000 Rs. 15,000	First 1000 Goods Carrier N1 registered during the policy period
4 W- e-Cars (Personal)	Upfront: Fixed Battery: Rs. 5,000/kWh Scrapping: 7000	Rs. 1,50,000 Rs. 7,000	First 2000, 4 W- e-Cars (Personal) (including Hybrids as defined in FAME II) registered during the policy period. Applicable only for vehicles with ex showroom price below INR 20 lakhs
4 W- e-Cars (Commercial)	Upfront: Fixed Battery: Rs. 10,000/kWh Scrapping: 7000	Rs. 2,00,000 Rs. 7,000	First 1000, 4 W- e-Cars (Commercial) (including Hybrids as defined in FAME II) registered during the policy period

Vehicle Category	Early Bird Incentive	Maximum Early Bird Incentive
e-Bicycle	Rs. 2000	Rs. 2,000
e-2W, e-Cart, e-Autos, e Goods Carrier (L5N and N1), e-4W (personal & commercial)	Rs 3,500/kWh	Rs. 50,000

Category	Incentive	Maximum Incentive
Private Charging	Infrastructure Incentive: Grant on purchase and installation of charging equipment	Rs. 6,000	Only for the first 30,000 private chargers installed during the policy period.
Public Charging	Reimbursement of GST paid 100% reimbursement of GST paid on the Fast Charging/Swapping Electric Vehicle Supply Equipment (EVSE) procured by private enterprises/individual	Rs. 50,000	Only for the first 50 fast charging /Swapping EVSE installed during the policy period. (Will not be applicable on Chargers under Central Subsidy)
	Upfront electricity infrastructure: Upfront cost on infrastructure for bringing power supply to Electric Vehicle Charging Station	Rs. 5,00,000	Only for the first 50 Public fast Charging/Swapping Stations installed in the state during the policy period. (Will not be applicable on Chargers under Central Subsidy)
	Electricity Duty Exemption: 100% Electricity duty exemption for Public Charging and Swapping stations	For policy period	For policy period

Sr. No	Classification of EV	2022-23	2023-24	2024-25	2025-26	2026-27	Total
1	2W	2,000	8000	20,000	54,000	85,000	1,69,000
2	3W	200	800	2000	4,000	10,000	17,000
3	4W(Non Commercial)	100	400	1400	3,000	7,000	12,000
4	4W(Commercial)	10	40	100	300	650	1,100
5	Buses	10	25	65	200	600	900
	Total						2,00,000

Sr No	Vehicle segment	Ceiling for Early Bird	2023 – 2027
1	2W	35	172
2	3W(E-Rickshaw/ E-Cart)	10	40
3	3W	10	40
4	Car(Including Taxis)	40	167
5	Bus	11	49
6	E-4w ([CV, Stage Carriage/Maxi Cabs)	10	41
Total	–	116	509

Sr No	Vehicle Segment	Subsidy (Whichever Is Lower)	Maximum ExShowroom Price to Avail (INR)
1	Two-Wheeler	10% of the Ex-Showroom Price or INR 15,000	1,50,000
2	Three-Wheeler – e Rickshaw / e-cart	10% of the Ex-Showroom Price or INR 30,000	3,00,000
3	Three-Wheeler	10% of the Ex-Showroom Price or INR 50,000	5,00,000
4	Car	10% of the Ex-Showroom Price or INR 2,50,000	25,00,000
5	Bus	25% of the Ex-Showroom Price or INR 50,00,000	2,00,00,000
6	E-4w ([CV, Stage Carriage/Maxi Cabs)	10% of the Ex-Showroom Price or INR 3,00,000	30,00,000

Sr No	Vehicle Segment	Subsidy (Whichever Is Lower)	Maximum ExShowroom Price to Avail (INR)	No of EVs to be subsdised
1	Two-Wheeler	20% of the Ex-Showroom Price or INR 60,000	1,50,000	28
2	Three-Wheeler – e Rickshaw / e-cart	20% of the Ex-Showroom Price or INR 60,000	3,00,000	10
3	Three-Wheeler	20% of the Ex-Showroom Price or INR 1,00,000	5,00,000	10
4	Car	20% of the Ex-Showroom Price or INR 5,00,000	25,00,000	33
5	Bus	50% of the Ex-Showroom Price or INR 1,00,00,000	2,00,00,000	11
6	E-4w ([CV, Stage Carriage/Maxi Cabs)	20% of the Ex-Showroom Price or INR 6,00,000	30,00,000	9
Total				101

Sr No	Vehicle segment	Number of EVs	State subsidy
1	2W	100	Rs.10,000/- per Kwh of battery capacity subject to a maximum of Rs.30,000/- per vehicle.
2	3W	50	Rs.10,000/- per Kwh of battery capacity subject to a maximum of Rs.50,000/- per vehicle.
3	4W	50	Rs.10,000/- per Kwh of battery capacity subject to a maximum of Rs.2,00,000/- per vehicle

Sr. No	Owner of PCS	Subsidy
1	Retail Outlet of Oil Marketing Companies	15% of the cost of putting up Public Charging Infrastructures and Stations will be reimbursed by the State Govt. in the form of subsidy/ incentive.
2	Local Entrepreneurs	25% of the cost of putting up Public Charging Infrastructures and Stations will be reimbursed by the State Govt. in the form of subsidy/ incentive

Category of vehicle	% Of subsidy	The maximum amount of subsidy
Electric Two-wheelers	15%	Rs. 5000/-
Electric Three-wheelers	15%	Rs.12,000/-
Electric Four Wheelers	15%	Rs. 1,00,000/-

Criteria	Threshold Value
Min. top speed	40km/hour
Min. acceleration	0.65m/s2
Max. electric energy consumption	Not exceeding 7kWh/ 100km
Warranty	At least 3 years comprehensive warranty including that of battery from the manufacturer

Criteria	Threshold value
Min. top speed	40 km/hr
Min. acceleration	0.65 m/s2
Max. electric energy consumption Not exceeding	7 kWh/100km
Warranty	At least 3 years comprehensive warranty including that of battery from the manufacturer

EV Segment	Demand Incentives
Electric 2-wheeler	Purchase incentive of Rs. 5,000/- per kWh of battery capacity; Maximum incentive of Rs. 30,000/- per vehicle Incentive for scrapping and de-registering old ICE two wheelers registered in Delhi: Up to Rs. 5,000/- of the incentive shall be reimbursed by the GNCTD All delivery service providers shall be expected to convert 50% of their fleet operating in Delhi to electric by 3V March, 2023 and 100% by 31st March, 2025.
E-Autos	Open permit system shall be applicable & be given on first-come-first-serve basis; no cap on permits issued to e-autos in Delhi Purchase Incentive of Rs. 30,000/- per vehicle shall be provided by GNCTD Interest subvention of 5% on loans and/or hire purchase scheme for the purchase of an e-auto Incentive for scrapping and de-registering old ICE auto rickshaws registered in Delhi: Up to Rs. 7,500/- of the incentive shall be reimbursed by the GNCTD The auto-rickshaw permits linked to the de-registered ICE vehicle can be surrendered and exchanged for an e-auto permit at no additional cost.
E-rickshaws & E-carts	Purchase Incentive of Rs. 30,000/- per vehicle shall be provided by GNCTD Interest subvention of 5% on loans and/or hire purchase schemes Buses
E-buses	Pure electric buses shall constitute at least 50% of all new stage-carriage buses (i.e., for all public transport vehicles with 15 seats or more) procured for the city fleet including for last-mile connectivity Induction of 1000 pure electric buses by 2020
Goods Carriers	A Purchase Incentive of Rs. 30,000/- to the first 10,000 e-Carriers to be registered in Delhi after the issuance of this policy. Interest subvention of 5% on loans and/or hire purchase schemes. Incentive for scrapping and de-registering old ICE goods carriers registered in Delhi: Up to Rs. 7,500/- of the Incentive shall be reimbursed by the GNCTD Goods carriers (i.e., L5N and N1 type)
Four wheeler	Purchase Incentive of Rs. 10,000/- per kWh of battery capacity Maximum incentive of Rs. 1,50,000/- per vehicle to the registered owners of the first 1000 e-cars to be registered in Delhi after the issuance of this policy

Vehicle Segment	Max vehicle to be supported	Approx. battery size	Approx incentive @10,000 per kWh
Electric 2 wheeler	24,000	2 kWh	20,000/-
Electric 3 wheeler	70,000	5 kWh	50,000/-
Electric 4 wheeler	4000	15 kWh	150,000/-
4 wheeler (SHEV)	1000	1.3 kwh	13,000/-
Electric bus	1000	250 kwh	25,00,000/-

Vehicle Segment	Incentive Available ( INR)	No. of Vehicles to be Incentivized	Maximum Incentive per Vehicle (INR)
Electric Two Wheeler (L1 & L2)	5000/kwh	1,00,000	10,000
Electric 3 Wheeler autos (L5M)	5000/kwh	15,000	30,000
Electric 3 Wheeler goods carrier (L5N)	5000/kwh	10,000	30,000
Electric 4 Wheeler cars (M1)	5000/kwh	10,000	1,50,000
Electric 4 Wheeler goods carrier (N1)	5000/kwh	10,000	1,00,000
Electric buses	10% of vehicle Cost	1,000	20,00,000

Vehicle Segment	Scrappage Incentive
Electric Two-Wheeler	INR 7,000
Electric Three-Wheeler	INR 15,000
Electric Four Wheeler	INR 25,000

Incentives Description	Incentives
Assured Buyback	6% of total vehicle cost capped at INR 10,000/-
Battery warranty of at least 5 years	4% of total vehicle cost capped at INR 6,000/-

CHARGING STATION	Incentive
Small Charging Stations	Capital Subsidy of 25% of the value of the charging equipment/machinery for first 300 charging stations up to a Maximum subsidy of INR 1,50,000
Medium Charging Stations	Capital Subsidy of 25% of the value of the charging equipment/machinery for the first 100 stations up to a Maximum subsidy of INR 2,00,000.
Large Charging Stations	Capital Subsidy of 25% of the value of the charging equipment/machinery for the first 100 stations up to a Maximum subsidy of INR 10,00,000.

Vehicle Segment	State Subsidy Amount (in Rs.)	Max ex-factory price to avail incentive (in Rs.)
2 wheeler	Rs. 10,000/- per kWh	1,.50,000
3 wheeler	Rs. 10,000/- per kWh	5,00,000
4-Wheeler	Rs. 10,000/- per kWh	15,00,000

Vehicle Segment	Battery Size in KWH (approx.)	State Subsidy Amount(Rs.)	Total State Subsidy (Rs.)	Maximum ex-factory price to avail incentive (Rs.)
Electric Two wheeler	2 KWH	10000/- per kWh	20000/-	1,50,000
Electric Three wheeler	5 KWH	10000/- per kWh	50000/-	5,00,000
Electric Four wheeler	15 KWH	10000/- per kWh	150000/-	15,00,000